Correlation Between Franklin California and Franklin All
Can any of the company-specific risk be diversified away by investing in both Franklin California and Franklin All at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Franklin California and Franklin All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin California Insured and Franklin All Cap, you can compare the effects of market volatilities on Franklin California and Franklin All and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Franklin California with a short position of Franklin All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin California and Franklin All.
Diversification Opportunities for Franklin California and Franklin All
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin California Insured and Franklin All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin All Cap and Franklin California is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Franklin California Insured are associated (or correlated) with Franklin All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin All Cap has no effect on the direction of Franklin California i.e., Franklin California and Franklin All go up and down completely randomly.
Pair Corralation between Franklin California and Franklin All
If you would invest (100.00) in Franklin All Cap on August 26, 2024 and sell it today you would earn a total of 100.00 from holding Franklin All Cap or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin California Insured vs. Franklin All Cap
Performance |
| Timeline |
| Franklin California |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin All Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin California and Franklin All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin California and Franklin All
The main advantage of trading using opposite Franklin California and Franklin All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin California position performs unexpectedly, Franklin All can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Franklin All will offset losses from the drop in Franklin All's long position.| Franklin California vs. Old Westbury Large | Franklin California vs. Siit Large Cap | Franklin California vs. Rational Strategic Allocation | Franklin California vs. Touchstone Large Cap |
| Franklin All vs. Aqr Long Short Equity | Franklin All vs. Legg Mason Partners | Franklin All vs. Pnc Emerging Markets | Franklin All vs. Ep Emerging Markets |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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